NIB flags NZ losses, strategic options for Travel business

The news: Health insurer NIB Holdings has flagged potential second-half losses at its New Zealand operations and said it is considering strategic options for the nib Travel business.

The numbers: The company said claims inflation at its New Zealand business jumped to 26% for the four months to April compared to 17.6% in the first half. It is now anticipating operating losses for nib NZ in the second half, compared to a previous estimate of an operating profit.

The context: NIB said conditions remained challenging in New Zealand with weak GDP growth and Hospital Services and Health inflation remaining elevated. Ongoing market uncertainty remains as industry claims conditions continue to deteriorate with public hospital wait times driving increased utilisation through private care settings, it said.

Despite this, the insurer reaffirmed its guidance for full-year group underlying profit to be in the range of $235 million to $250 million. Meanwhile, it has appointed Jarden to consider strategic options for its underperforming nib Travel business following an internal review.